170 jobs to go as Carlsberg shuts brewery

Written by Claire Weekes

Wednesday, 05 November 2008

Drinks giant Carlsberg is to close its 186 year-old brewery in Leeds with a loss of up to 170 jobs.

The Danish brewing giant blamed falling beer sales, higher duties and regulatory pressure for the decision to shut the site.

Carlsberg said it would shut the historic Tetley site in 2011. It will continue to run its larger brewery in Northampton, saying there was "no sense" in running two breweries in the current climate.

Talks with affected staff members will start immediately, and Carlsberg said it will seek to redeploy staff, or help them find new jobs, where possible.

Nick Webb, supply chain director of Carlsberg UK, said: "We are announcing the closure proposal more than two years in advance so that our employees are able to prepare for the future.

"We have to consider difficult decisions to remain competitive in the current environment and we regret the risk to the jobs of our employees.

"Although the business has remained robust in tough market conditions, this proposed move is vital to ensure Carlsberg UK remains a strong and sustainable business in the future."

The beer maker, which acquired Scottish & Newcastle with Heineken earlier this year, meanwhile announced that it had cut its full-year operating profit forecasts by 2.5%.